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Now or Never: It is Decision Time for Real Estate Buyers

  • 27th Aug 2020
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Now or Never: It is Decision Time for Real Estate Buyers

On 26th August 2020, the Maharashtra government announced a major step to revive the stagnant and cash crunched liquidity sector. Home buyers will now have to pay just 2% as stamp duty and registration charges until December 31st 2020.

With the ongoing pandemic caused by Covid-19 and the sluggish market conditions, several homebuyers have been on the fence and not keen to take the plunge for purchasing a home.

The decision to temporarily reduce stamp duty charges will increase liquidity and build confidence for all the key players, right from real estate developers and contractors down to the end user. Many real estate developers are currently under the stress of unsold inventory and were lobbying the government for a reduction in charges to increase sales.

With this measure, albeit temporary, we expect the demand for the festive season to improve. A 3% reduction in stamp duty charges translates to significant savings for home buyers who, in addition to the weak market sentiment and slow sales, can now fully take advantage and get the deal of a lifetime.

The next 6 months will now witness an absorption across the primary and secondary real estate market. Covid-19 has impacted the timelines of several projects that are under construction. This will create a demand for ready to move properties for genuine end users. Developers with an Occupation Certificate (OC) in place stand to gain as well.

Revised Stamp Duty Rates (Temporary)

Duration

2%

1st September 2020 – 31st December 2020

3%

1st January 2021 – 31st March 2021

 

Source: https://www.livemint.com/news/india/maharashtra-government-slashes-stamp-duty-by-3-until-dec-2020-11598455718485.html



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